Microsoft's new OS is a big improvement over Windows Vista, and because it's based on the same underlying kernel code there should be fewer compatibility headaches for those who make the switch. Add to that a retooled taskbar, simpler home networking, faster start-up, and more, and Windows 7 may succeed where Vista failed.

Windows 7 is finally here. Will it redeem Microsoft's Vista-tarnished image? All indications are that it will. The hardware driver issues that plagued Vista won't recur, for the simple reason that Windows 7 reuses the same deep plumbing code that Vista did, and after nearly three years, the incompatibilities have actually been ironed out. In other words, most of the drivers already exist. Microsoft has also remedied the other two big complaints about Vista: its bloat and those obnoxious User Account Controls. While the trend has long been for new OSes to be bloated with new goodies, Windows 7 actually performs better and takes up less disk space than its predecessor. Long story short: I like Windows 7 a lot, and with its new taskbar, user interface, and home networking enhancements, PCMag.com gives the new OS the thumbs up.

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The new streaming media functionality, together with Windows 7's new taskbar, Device Stage, HomeGroup networking, and XP Mode make this Windows far more than a service pack for Vistathough the two operating systems share much underlying plumbing. That means we haven't seen the compatibility hassles we saw with Vista. But Windows 7's lighter system footprint makes for faster start-up and slightly faster performance. Cap all this with rock-steady reliability, and Microsoft may just have a winner.

One stumbling block, however, is the lack of an official upgrade path from Windows XP, which affects a lot of users who bypassed Vista. Luckily, Microsoft is offering upgrade pricing for the now two-generations-old XP (pricing is detailed later in the story). A decent workaround for the XP-to-7 upgrade dilemma comes in the form of Laplink Software's PCMover application, which moves apps, settings, user accounts, and documents from XP to Windows 7 in a smooth, controllable workflow.

Editions and Setup
There will be three editions of Windows 7 for sale: Home Premium ($119.99
upgrade, $199.99 full), Professional ($199.99 upgrade, $299.99 full), and Ultimate ($219.99 upgrade, $319.99 full). Anyone with a valid copy of Vista or XP is eligible for the upgrade price. Most users will opt for one of the first two, with Professional obviously suited to workplaces and hard-core techie users. Ultimate includes everything from the other editions, but doesn't add much more than the abilities to encrypt USB drives and switch to any of 35 languages. (Gone are the "Ultimate Extras" of Vista days.)

A fourth edition, Starter, will come preinstalled on some netbooks, but won't be available at retail outlets. Starter won't run eye candy like Aero Glass, though we have found most netbooks run regular Windows 7 well in PC Labs. The Home Basic edition, seen in Vista, is gone (in the United Statesit will be made available in developing countries), so Home Premium is the only home choice. Note also that these are list prices, and you can expect to see markdowns as time passes. Also note that Microsoft offers a Student upgrade license for just $29.99, and PC part suppliers have already offered OEM versions, without all the packaging and support, for $99 (Home Premium), $134.99 (Professional), and $174.99 (Ultimate).

There will also be so-called "Anytime Upgrades" from the lower editions of Windows 7 to the higher editions. Upgrading from Starter to Home Premium will cost $79.99, from Home Premium to Professional will cost $89.99, and from Home Premium to Ultimate will cost $139.99. Finally, a Family Pack pricing option will allow installation of Windows 7 Home Premium on three PCs for $149.99a pretty sweet deal compared to the individual licenses. Note also that Microsoft recently announced volume discounts for business customers.

The operating system's install routine has new icons and a few splash screens ("Checking video performance," and so on) with a new starburst effect. Even the Starting Windows and log-on screens have gained a leafy, patterned background. The installation smartly wouldn't allow me to set up the OS while my laptop was unplugged. And the installer asks to look for updates on first run; I recommend agreeing to this.

If you want to do an upgrade installation, you must be running Vista SP1 or SP2 and have 12.9GB of free disk space. Remember, upgrade installation, in which all your programs and documents are maintained for the new OS, is only available to Vista users. Users of XP and other versions of Windows will have to choose Custom and do a "clean" install.

Installation
I installed Windows 7 on a Dell Mini 10 netbook, a Dell XPS M1330 notebook and an HP TouchSmart. The installer can format or create new partitions if you choose its Custom choice. Installation took 30 minutes for a machine that already had the release candidate of Windows 7 installed, longer than the 20 minutes RC took on a blank partition. The installer copies programs and data from the previous installation to a "windows.old" directory, as Vista did. Installing to a blank new partition doesn't require that step, so installation went faster, at 24 minutesstill slightly slower than installing the RC took. But all of these times beat the heck out of Vista's minimum time requirement of 45 minutes to an hour.

After installation, however, I had a problem with the laptop's graphics drivermy Windows Experience Index was 1, and I couldn't see Aero desktop effects. Getting the correct driver installed was far less automated than it should have been; I had to go to Dell's site and find the driver. The installer found and installed the correct driver on the HP TouchSmart and a few netbooks I tested, but one netbook had the same graphics driver problem. There have been other reports of laptop driver issues, but you can usually go to the manufacturer's site and get the driver yourself, and it won't be a problem if you buy a new Windows 7 laptop.Next: Interface and Taskbar

Michael Muchmore is PC Magazine’s lead analyst for software and Web applications. A native New Yorker, he has at various times headed up PC Magazine’s coverage of Web development, enterprise software, and display technologies. Michael...

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